What would be the portfolio required rate of return

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A money manager is holding the following portfolio:

Stock             Amount Invested                Beta

1                   $300,000                         0.6

2                    300,000                         1.0

3                       500,000                     1.4

4                      500,000                      1.8

Question 1: The risk-free rate is 6 percent and the portfolio's required rate of return is 12.5 percent. The manager would like to sell all of her holdings of Stock 1 and use the proceeds to purchase more shares of Stock 4. What would be the portfolio's required rate of return following this change?

Reference no: EM132531823

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